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  H.B. No. 2839
 
 
 
 
AN ACT
  relating to a liquidity stress test for certain insurance
  companies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 823, Insurance Code, is
  amended by adding Section 823.0596 to read as follows:
         Sec. 823.0596.  LIQUIDITY STRESS TEST. (a)  In this section:
               (1)  "Liquidity stress test framework" means an
  evidence-based analysis that aims to capture the impact on
  financial markets of aggregate asset sales of certain insurers
  under various liquidity stress scenarios.
               (2)  "Scope criteria" means the designated exposure
  bases, including minimum magnitudes of the bases for a specified
  data year, adopted by the commissioner by rule under Subsection (e)
  to establish a preliminary list of insurers included in the
  liquidity stress test framework for that data year.
               (3)  "Ultimate controlling person" has the meaning
  assigned by Section 823.055.
         (b)  The ultimate controlling person of an insurer shall file
  the insurer's results of a specific year's liquidity stress test
  performed using the liquidity stress test framework adopted by the
  commissioner by rule under Subsection (e) if:
               (1)  this state is the lead state of the insurer's
  group; and
               (2)  the insurer or the insurer's group meets the scope
  criteria.
         (c)  The filing must be made on the reporting template for
  the relevant year adopted by the commissioner by rule under
  Subsection (e).
         (d)  The commissioner may exempt from the filing requirement
  for a data year an insurer described by Subsection (b) after the
  commissioner consults with other state insurance commissioners
  regarding the impact that exempting the insurer may have on the
  aggregation of liquidity stress test results filed by other
  insurers with those states.
         (e)  The commissioner by rule shall adopt a liquidity stress
  test framework, including scope criteria and reporting templates,
  consistent with the framework published by the National Association
  of Insurance Commissioners to facilitate the aggregation of results
  from the liquidity stress test filed with this and other states.
         (f)  The commissioner shall collect the results filed under
  Subsection (b) and report them to the National Association of
  Insurance Commissioners in a manner that facilitates the
  aggregation of other insurers' results filed with this and other
  states.
         (g)  In addition to the confidentiality protections under
  Section 823.011:
               (1)  a filing required by Subsection (b) in the
  possession or control of the department that is obtained by,
  created by, or disclosed to the commissioner or any other person,
  including the National Association of Insurance Commissioners, is
  recognized by this state as being proprietary and to contain trade
  secrets; and
               (2)  the commissioner and any other person, including
  the National Association of Insurance Commissioners, who receives a
  filing required by Subsection (b) may not testify or be required to
  testify in any private civil action concerning that filing.
         SECTION 2.  This Act takes effect September 1, 2023.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2839 was passed by the House on May 2,
  2023, by the following vote:  Yeas 143, Nays 1, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2839 was passed by the Senate on May
  24, 2023, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor